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NC: 2023:KHC:26237-DB
RFA No. 2192 of 2022
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 27TH DAY OF JULY, 2023
PRESENT
THE HON'BLE MR JUSTICE P.S.DINESH KUMAR
AND
THE HON'BLE MR JUSTICE T.G. SHIVASHANKARE GOWDA
REGULAR FIRST APPEAL NO. 2192 OF 2022 (RES)
BETWEEN:
M/S. SNEHA ASSOCIATES
NO.L-36/D, MYSORE TRADE
CENTER BUILDING
BANGALORE NILAGIRI ROAD
OPP. K.S.R.T.C BUS STAND
MYSURU-570 001
REPRESENTED BY ITS
MANAGING CO-OWNERS
1. MR. C.S. CHANDRASHEKAR
S/O LATE C. SIDDHAIAH AND
2. MR. SHIVARAMA HEGDE
S/O MARIYANNA HEGDE …APPELLANT
(BY SHRI. G. BHARGAV AND
SHRI. GAJANANA HEGDE, ADVOCATES)
AND:
M/S. GIRIAS INVESTMENT (P) LTD
REPRESENTED BY ITS
MANAGING DIRECTOR
MR. PANNALAL GIRIA
NO.34/1A, 1ST MAIN
GANDHINAGAR
BENGALURU-560 009 …RESPONDENT
(BY SHRI. MANEESHA KONGOVI AND
SHRI. V. ABHINAY, ADVOCATES)
Digitally signed
by YASHODHA N
Location: HIGH
COURT OF
KARNATAKA
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NC: 2023:KHC:26237-DB
RFA No. 2192 of 2022
THIS RFA IS FILED UNDER SECTION 96 OF CPC., AGAINST THE
ORDER DATED 27.09.2022 PASSED ON I.A.NO.3 AND 4 IN OS
No.350/2020 ON THE FILE OF THE PRINCIPAL SENIOR CIVIL JUDGE,
AND CJM, MYSURU, ALLOWING THE I.A NO.3 FILED UNDER ORDER VII
RULE 11(a) OF CPC AND ALLOWING THE I.A.NO.4 FILED UNDER
SECTION 69(2) OF INDIAN PARTNERSHIP ACT, 1932 R/W ORDER VII
RULE 11(d) OF CPC FOR REJECTION OF PLAINT.
THIS
RFA,
COMING
ON
FOR
ADMISSION,
THIS
DAY,
P.S.DINESH KUMAR, J., DELIVERED THE FOLLOWING:
This appeal by the plaintiff is directed against the
judgment and decree dated September 27, 2022 in O.S. No.
350/2020 passed by the Principal Senior Civil Judge and
CJM, Mysore rejecting the plaint under Order 7 Rule 1(d) of
the Civil Procedure Code, 1908.
2.
For the sake of convenience, parties shall be
referred as per their status before the Trial Court.
3.
Brief facts of the case are, defendant is the lessee
of a commercial property pursuant to lease agreement dated
01.07.2013. Plaintiff issued a notice dated 17.01.2020
calling upon the defendant to vacate and handover the
vacant possession of the suit property. Defendant did not
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comply with the request. Hence, plaintiff has brought the
instant suit for ejectment and damages.
4.
Defendant filed two I.A.s for rejection of plaint. In
the I.A. 3 it is pleaded that suit is barred by law and there
was no cause of action. In the I.A.4 it is pleaded the suit is
not maintainable in view of Section 69(2) of the Indian
Partnership Act, 19321. Both I.A.s have been allowed and
plaint has been rejected. Hence, this appeal.
5.
On the basis of the above pleadings, the Trial
Court has farmed following points for consideration:
i)
Whether the Interlocutory Applications titled I.A No.III
filed under Order VII Rule 11(a) of Civil Procedure
Code and I.A No.IV filed under Section 69(2) of Indian
Partnership Act r/w Order VII Rule 11(d) of Civil
Procedure Code deserves to be allowed or not?
ii)
What order?
6.
Answering point No.1 in affirmative, the Trail
Court has allowed the I.A.s.
1 ‘the Act’ for short
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7.
We have heard Shri. G. Bhargav, learned
Advocate for the appellant/plaintiff and Shri. Maneesha
Kongovi, learned Advocate for respondent/defendant.
8.
Shri. G. Bhargav, for the plaintiff, praying to allow
the appeal, mainly submitted that:
Section 69(2) of the Act only bars suits which
arise out of contracts. In the instant suit,
plaintiff is an association of two co-owners and
both
co-owners
are
parties.
Hence
the
prohibition
under
Section
69(2)
of
the
Partnership Act is not applicable to the facts of
the case;
the co-owners do not carry on any business
activity similar to a partnership firm nor do
they run any association. They jointly own the
suit property and they have granted the lease
to the defendant;
the Trial Court ought to have dismissed the
applications as the suit instituted against
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defendant was by the co-owners and not by
an unregistered partnership firm;
there is no averment in the plaint stating that
the plaintiff is an unregistered firm. The Trial
Court has erred in holding that plaintiff is an
unregistered firm;
9.
Opposing the appeal, Shri. Maneesha Kongovi, for
the defendant, submitted that the plaintiff is an unregistered
partnership firm. Therefore, the prohibition under Section
69(2) of the Partnership Act is applicable. The Trial Court
has correctly appreciated the facts and law on the point; and
rejected the plaint.
10. In substance the argument of the plaintiff is that
the property in question is owned jointly by two individuals.
No partnership firm is constituted. Therefore the rejection of
plaint at the threshold is bad in law.
11. We
have
carefully
considered
the
rival
contentions and perused the records.
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12. Plaintiff is described in the plaint as follows:
“M/S. SNEHA ASSOCIATES
NO.L-36/D, MYSORE TRADE
CENTER BUILDING
BANGALORE NILAGIRI ROAD
OPP. K.S.R.T.C BUS STAND
MYSURU-570 001
REPRESENTED BY ITS
MANAGING CO-OWNERS
1. MR. C.S. CHANDRASHEKAR
S/O LATE C. SIDDHAIAH AND
2. MR. SHIVARAMA HEGDE
S/O MARIYANNA HEGDE”
13. Plaintiff’s contention is that the two persons
mentioned in the cause-title are co-owners. It is their
specific case that no partnership is in existence. The
application for rejection of plaint is filed under Order 7 Rule
11(a) and (d). Plaint can be rejected under Order 7 Rule
11(a) if the defendant establishes that there was no cause of
action. It can be rejec
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